ABBV
Abbvie Inc.
Healthcare
10/14/2014
Presented
| Date | 10/09/2014 |
| Price | $54.97 |
| Market Cap | $87.60B |
| Ent Value | $92.35B |
| P/E Ratio | 54.96x |
| Book Value | $1.10 |
| Div Yield | 3.4% |
| Shares O/S | 1,593.44M |
| Ave Daily Vol | 12,140,000 |
| Short Int | 6.94% |
Current
| Price | $191.86 |
| Market Cap | $338.89B |
| AbbVie Inc. discovers, develops, manufactures, and sells pharmaceutical products worldwide. The companys products include HUMIRA, a biologic therapy administered as a subcutaneous injection to treat autoimmune diseases; VIEKIRA PAK, an all-oral, short-course, interferon-free therapy, with or without ribavirin, for adult patients with genotype 1 chronic hepatitis, including those with compensated cirrhosis; Kaletra, an anti-HIV-1 medicine used with other anti-HIV-1 medications as a treatment that maintains viral suppression in people with HIV-1; Norvir, a protease inhibitor indicated in combination with other antiretroviral agents to treat HIV-1 infection; and Synagis to prevent respiratory syncytial virus infection in high risk infants. It also provides AndroGel, a testosterone replacement therapy for males diagnosed with symptomatic low testosterone; Creon, a pancreatic enzyme therapy for exocrine pancreatic insufficiency; Synthroid to treat hypothyroidism; and Lupron, a product for the palliative treatment of prostate cancer, and the treatment of endometriosis and central precocious puberty, as well as for the preoperative treatment of patients with anemia. In addition, the company offers Duopa and Duodopa, a levodopa-carbidopa intestinal gel to treat Parkinsons disease; Sevoflurane, an anesthesia product for human use; TriCor, Trilipix, Niaspan, Simcor, and Advicor to treat metabolic conditions characterized by high cholesterol and/or high triglycerides; and Zemplar to treat secondary hyperparathyroidism. It sells its products to wholesalers, distributors, government agencies, health care facilities, specialty pharmacies, and independent retailers from its distribution centers and public warehouses. The company has strategic collaboration with Calico Life Sciences LLC, Infinity Pharmaceuticals, Inc., Ablynx NV, Galapagos NV, Alvine Pharmaceuticals, Inc., and Action Pharma A/S. AbbVie Inc. was incorporated in 2012 and is based in North Chicago, Illinois. |
Publicly traded companies mentioned herein: AbbVie Inc (ABBV), Gilead Sciences Inc (GILD), Shire PLC (SHP LN / SHPG)
Highlights
The presenter has owned shares of AbbVie (ABBV) since it was spun off in 2013 by Abbott, and believes the current risk/ reward is very attractive. Concerns about inversions - broadly speaking - and Humira’s patent expiration have created a headwind; however, now that the inversion rules have been made public and ABBV’s HepC combination is closer to potential approval, the presenter thinks the timing may be good to add to the position. He said investors can gain exposure directly via ABBV today, or through shares of Shire, but said “the spread has come in from 10% to 5%, and I wouldn’t buy it for 5% until the week of October 20th or 27th.” Regarding timing of the closing, he sees the ABBV/ Shire transaction closing by early November, at the latest.
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